B08 Metal Ore Mining

Resource raisings hit the pits

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Original article by Paul Garvey
The Australian – Page: 18 : 18-Jan-16

New figures show that Australian resources groups raised just $A2.41bn in new equity during 2015, which is the lowest level since 2005. There was a sharp decline in IPO activity in particular in the resources sector, while iron ore hopeful Waratah Resources is the latest company to shift its focus to the technology sector. Businessman Nathan Tinkler notes that investors are reluctant to support equity raisings in the resources sector at present.

CORPORATES
WARATAH RESOURCES LIMITED – ASX WGO, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, BLOOMBERG LP, PENGANA CAPITAL LIMITED, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD

The new normal: Rio freezes salaries and travel

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Original article by Paul Garvey
The Australian – Page: 17 : 15-Jan-16

The challenging conditions in the resource sector have prompted Rio Tinto to implement new cost-cutting measures, which include putting salary increases on hold. All staff will be subject to the salary freeze, including CEO Sam Walsh, who has told staff that a rebound in commodity prices is unlikely for some time. Rio Tinto will also seek to reduce its travel expenses, while it may reduce its expenditure on consultants and contractors.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Citi chooses BHP as preferred big miner

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 15-Jan-16

Citigroup is upbeat about BHP Billiton, issuing a "buy" rating on the stock and a share price target of $A18. The investment bank has also indicated that it now prefers BHP over rival mining giant Rio Tinto, citing factors such as BHP’s significant underperformance during the last six months and the outlook for iron ore. Citigroup expects the price of the steel input to average $US35 per tonne over the next several years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}CITIGROUP PTY LTD,{SPAC}FORTESCUE METALS GROUP LIMITED – ASX FMG,{SPAC}SANTOS LIMITED – ASX STO,{SPAC}WOODSIDE PETROLEUM LIMITED – ASX WPL,{SPAC}BEACH ENERGY LIMITED – ASX BPT

Iron ore price slide causes more delays for Sundance

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 14-Jan-16

China Gezhouba Group has been forced to delay signing a contract to develop transport infrastructure for Sundance Resources’ iron ore project in Africa. The state-owned group has sought to postpone signing the agreement with the Cameroon Government due to the latter’s financing issues in the wake of the downturn in the iron ore price. China Gezhouba Group will build port and rail facilities for the Mbalam-Nabeba project.

CORPORATES
SUNDANCE RESOURCES LIMITED – ASX SDL, CHINA GEZHOUBA GROUP COMPANY LIMITED, ANSHAN IRON AND STEEL COMPANY

ANZ tips iron ore to retest lows, surplus

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Original article by Timothy Moore
The Australian Financial Review – Page: 26 : 14-Jan-16

The iron ore price fell by 39 per cent during 2015, reaching a low of $US38.30 an ounce in mid-December. The price of the steel input has since recovered slightly, but Daniel Hynes and Anurag Soin of the ANZ Bank expect it to retreat again when Chinese steel mills restock following the Chinese New Year holiday period. Hynes and Soin are bearish about the outlook for iron ore in 2016, forecasting a 2.8 per cent decline in demand for steel in China.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BLOOMBERG LP, ROY HILL IRON ORE PTY LTD

ERA ‘strategic review’ for Ranger in pipeline

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Original article by Barry FitzGerald
The Australian – Page: 18 : 13-Jan-16

Energy Resources of Australia’s uranium production at the Ranger mine in the Northern Territory rose by 12 per cent year-on-year to 669 tonnes in the December 2015 quarter. The company is only processing stockpiled ore from the open-cut operation, which has reached the end of its mine life, after major shareholder Rio Tinto rejected plans for the Ranger 3 Deeps expansion. ERA will release the results of its strategic review during the March 2016 quarter.

CORPORATES
ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, ZENTREE INVESTMENTS

Rusal boss calls for worldwide tax on carbon to curb emissions

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Original article by Barry FitzGerald
The Australian – Page: 18 : 13-Jan-16

Rusal president Oleg Deripaska argues that action to address the issue of climate change requires a global carbon tax. He has proposed that this tax be initially set at $US15 per tonne, while 33 per cent of revenue generated by the tax could be allocated to financing R&D projects in the fields of cleaner energy sources and energy efficient technology. There is widespread support for a carbon tax among Australian mining companies.

CORPORATES
RUSAL, MASSACHUSETTS INSTITUTE OF TECHNOLOGY

Gindalbie ‘at risk’ of collapse

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Original article by Paul Garvey
The Australian – Page: 18 : 13-Jan-16

The future of Gindalbie Metals is uncertain following Ansteel’s decision to cease providing funding for the Karara magnetite ore mine in Western Australia. The Chinese group has a 52 per cent stake in the mine, which has a workforce of 1,000. Gindalbie has advised that there now are doubts about its ability to continue as a going concern, prompting its shares to fall to a record low of $A0.08 on 12 January 2016. The stock traded at $A1.40 in 2011, when the iron ore price was around $A180 per tonne.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Cut in steel production a new blow for miners

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Original article by Scott Murdoch, Wang Yuanyuan
The Australian – Page: 15 : 12-Jan-16

The Chinese province of Hebei will reduce its iron and steel production by 10 million tonnes and eight million tonnes respectively in 2016. Hebei accounts for about 25 per cent of the nation’s iron and steel production, as well as the bulk of the iron ore exported from Australia to mainland China. The production cutbacks have been attributed to factors such as an oversupply and an attempt to address the issue of pollution in China.

CORPORATES
XINHUA NEWS AGENCY, TSINGHUA UNIVERSITY, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE

Rio to consider Walsh’s successor

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Original article by James Chessell
The Australian Financial Review – Page: 40 : 11-Jan-16

The head of Rio Tinto’s iron ore division, Andrew Harding, is seen as the leading candidate to succeed CEO Sam Walsh. The latter himself headed the iron ore division before being elevated to the top job after Tom Albanese resigned in 2011 in the wake of several massive write-downs. Walsh recently indicated that Rio’s board favours appointing an internal candidate to succeed him. Succession planning will be a key priority for Rio chairman Jan de Plessis, who will want to conclude this process several years before he stands down.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BANK OF AMERICA CORPORATION, ANGLO AMERICAN PLC, SABMILLER PLC, ANHEUSER-BUSCH INBEV SA/NV, GM HOLDEN LIMITED, NISSAN MOTOR COMPANY (AUSTRALIA) PTY LTD